SPDR Gold Shares
Encyclopedia
SPDR Gold Shares is part of the SPDR
family of exchange-traded fund
s (ETFs) managed and marketed by State Street Global Advisors
. As of September 2010, SPDR Gold Shares is the largest gold exchange-traded product and second-largest exchange-traded fund in the world by market capitalization
.
This ETF denotes a share of gold
bullion, which is unlike many ETFs which represent ownership in a basket of stocks. SPDR Gold Shares are designed to track the price of a tenth of an ounce of gold. If the share price differs from the gold market price, the fund's manager exchanges blocks of 100,000 shares for 10,000 ounces of gold. The possibility of such exchanges keeps the ETF price roughly in line with the gold price, although the prices can diverge during each day.
As of October 30, 2010, the trust had 41,574,486 ounces of gold in its custody, representing an asset value of $55,972,246,241. SPDR Gold Shares is one of the top ten largest holders of gold in the world
, behind France
and ahead of China
.
sponsorship. Since 13th December 2007 and following a name change on 20th May 2008, SPDR Gold Shares has traded on NYSE Arca . It also trades on the Singapore Stock Exchange (SGX
:GLD 10US$), the Tokyo Stock Exchange and the Stock Exchange of Hong Kong .
s (400 oz.) and held by the Custodian, HSBC Bank USA
, in its London vault or in the vaults of sub-custodians. The ETF pays an annual expense charge of 0.40% per annum. The ETF has been criticized by Catherine Austin Fitts and Carolyn Betts for its extremely complex structure and prospectus
, possible conflict of interest
in its relationships with HSBC and JPMorgan Chase which are believed to have large short position
s in gold, and overall lack of transparency. Some critics compare the ETF with mortgage-backed securities and collateralized debt obligations. These problems with SPDR Gold Trust are not necessarily unique to the fund, however as the dominant gold ETF the fund has received the most extensive analysis.
SPDR
SPDR can mean:* Standard & Poor's Depositary Receipts, an exchange-traded fund.* "System Peril Distributed Reflex" is the name given to one of the AIs in the alternate reality game The Haunted Apiary ....
family of exchange-traded fund
Exchange-traded fund
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
s (ETFs) managed and marketed by State Street Global Advisors
State Street Global Advisors
State Street Global Advisors is the investment management division of State Street Corporation and the world’s second largest asset manager, with $1.9 trillion in assets under management as of June 2010....
. As of September 2010, SPDR Gold Shares is the largest gold exchange-traded product and second-largest exchange-traded fund in the world by market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
.
This ETF denotes a share of gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
bullion, which is unlike many ETFs which represent ownership in a basket of stocks. SPDR Gold Shares are designed to track the price of a tenth of an ounce of gold. If the share price differs from the gold market price, the fund's manager exchanges blocks of 100,000 shares for 10,000 ounces of gold. The possibility of such exchanges keeps the ETF price roughly in line with the gold price, although the prices can diverge during each day.
As of October 30, 2010, the trust had 41,574,486 ounces of gold in its custody, representing an asset value of $55,972,246,241. SPDR Gold Shares is one of the top ten largest holders of gold in the world
Gold Reserve
Gold Reserve Inc. is a gold mining company with operations and mining property in Bolivar State, Venezuela.Founded in 1956, Gold Reserve Inc. is now headquartered in Spokane, Washington. The company has about ten employees at its Washington office and about 55 in Venezuela. Of these 55,...
, behind France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
and ahead of China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
.
History
In November of 2004, the fund (under the name streetTRACKS Gold Shares) was listed on the New York Stock Exchange by State Street Global Advisors with World Gold CouncilWorld Gold Council
The World Gold Council is a non-profit association of the world's leading gold mining companies, established in 1987 to promote the use of gold. It aims to stimulate demand for gold from industry, consumers, and investors. The Council's Chief Executive Officer is Aram Shishmanian, former head of...
sponsorship. Since 13th December 2007 and following a name change on 20th May 2008, SPDR Gold Shares has traded on NYSE Arca . It also trades on the Singapore Stock Exchange (SGX
Singapore Exchange
Singapore Exchange Limited is an investment holding company located in Singapore and providing different services related to securities and derivatives trading and others. SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges FederationSingapore Exchange...
:GLD 10US$), the Tokyo Stock Exchange and the Stock Exchange of Hong Kong .
Management
The Trust’s allocated gold bullion is kept in the form of London Good Delivery gold barGold bar
A gold bar is a quantity of refined metallic gold of any shape that is made by a bar producer meeting standard conditions of manufacture, labeling, and record keeping....
s (400 oz.) and held by the Custodian, HSBC Bank USA
HSBC Bank USA
HSBC Bank USA, National Association, the American subsidiary of UK-based HSBC Holdings plc, is a bank with its operational head office in New York City and its nominal head office in McLean, Virginia . HSBC Bank USA, N.A...
, in its London vault or in the vaults of sub-custodians. The ETF pays an annual expense charge of 0.40% per annum. The ETF has been criticized by Catherine Austin Fitts and Carolyn Betts for its extremely complex structure and prospectus
Prospectus (finance)
In finance, a prospectus is a document that describes a financial security for potential buyers. A prospectus commonly provides investors with material information about mutual funds, stocks, bonds and other investments, such as a description of the company's business, financial statements,...
, possible conflict of interest
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....
in its relationships with HSBC and JPMorgan Chase which are believed to have large short position
Position (finance)
In financial trading, a position is a binding commitment to buy or sell a given amount of financial instruments, such as securities, currencies or commodities, for a given price....
s in gold, and overall lack of transparency. Some critics compare the ETF with mortgage-backed securities and collateralized debt obligations. These problems with SPDR Gold Trust are not necessarily unique to the fund, however as the dominant gold ETF the fund has received the most extensive analysis.